CFS is a direct buyer of notes and contracts secured by land in one or more subdivisions. These can be purchased on an individual one-on-one basis or through our standard portfolio division. We can also offer a unique program that was designed especially for land developers. This specialized land note portfolio program was designed for the developer that carries back a first lien in order to provide financing on residential or mobile home lots and is looking for a way to raise capital.
If you are interested in receiving preliminary pricing we request that you provide the following information:
We review this information and provide a price based on the attributes of the loan portfolio. These include interest rate, buyer's credit, payment history, seasoning, loan balance, and loan to value ratios.
Often land purchases are made with minimal dollars down creating
high loan to value ratios. We have provided a creative solution
through the use of reserves for land portfolios with a loan to
value ratio in excess of 59%. The use of reserves allows developers
to receive better overall pricing for their portfolio by providing
a large initial payout plus the disbursement of additional "reserved"
funds over time. The following table outlines our standard reserve
schedule:
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| 95 to 99% | 10% | 10% | 20% | 5% year 1 - 5% year 2 |
| 80 to 94% | 10% | 5% | 15% | 5% year 1 |
| 60 to 79% | 10% | None | 10% | N/A |
| 0 to 59% | None | None | None | N/A |
The standard reserve is disbursed on a quarterly basis in an amount equal to the percentage of principal balance reduction that has occurred on the pool during that same quarter. The accelerated reserve, if applicable, is released at the end of the first year, or over two years, based on the above schedule.
This program has had exceptional results for many developers
allowing them to raise the capital necessary for new or ongoing
development projects. Contact
Us for more details and a list of customer references.